21

a-3

As compared with the period previous to 1907, that, following it was far from a prosperous one, and the usual reaction set in. The number of houses erected during the 1911-16 intercensal period fell to 5,600 per annum, and during the later war years to less than 5,000 per annum, as compared with 6,400 per annum erected during the 1906-10 period, and timber consumption fell in sympathy. After the cessation of hostilities, the suspended building activities of the war-period began to crystallize, and new homes were in demand. Further impetus to the movement resulted from the abnormal increase in population, the average annual natural increase climbing to over 17,000 for the 1921-26 intercensal period as compared with only 15,000 during the previous period, and the average annual external increase to 10,000 as compared with only 4,000 for the 1916-21 period, so that with the exception of 1924, every year from 1919 to 1929 showed an increase in building activities, the number of new dwellings estimated from the building permits issued in 1926 reaching a peak of over 9,000, with timber-consumption increasing correspondingly. As in the 1906-10 period, the housing ratio increased rapidly, but instead of again commencing to fall after building activities and timber-comsumption had reached their peak, tended to still further increase, the explanation lying in the serious fall both in natural and external population increase (from over 28,000 in 1926 to 16,000 in 3.928) and in a large number of people moving from rented houses into new buildings of their own. It must therefore be considered that building activities and timber-consumption have progressed at a high level during recent years, and that readjustments to a lower level must be found in the near future. Generally speaking, the domestic demand showed an. improvement during the 1929 AprilDecember period as compared with the corresponding period of 1928. The explanation lies in increased building activities as evidenced by the monthly building statistics shown in the foregoing graph. With a drop in the building permits for the 1930 January-March period the domestic demand has slackened. As considered by individual localities, the situation varies considerably, Auckland and Wellington representing the extremes, with Christchurch and Dunedin ranking between. Whereas in Auckland the building permits for the 1930 January-March period totalled only £337,765, as compared with £591,965 for the corresponding period of 1929, in Wellington the respective figures were £800,540 and £628,117, in Dunedin £243,971 and £134,980, and in Christchurch £232,296 and £229,429.

Graph 8. —Value of Building Permits, by Months, for Years ended 31st March, 1925 to 1930.

As to the effect of imports upon demand the consumer generally is sympathetic to the use of local woods, provided he can secure what he wants. If this condition can be fulfilled, he will, as often as not, be prepared to pay a little more for the local article than for an imported timber; but he must have the article he requires. For instance, an import trade in hardwood flooring is now in course of development. Super-machined, kiln-dried, and secret-nailed oak, maple, birch, and beech floor-strips bid fair to establish a new fashion in flooring. Yet in its beech, and probably tawa, the Dominion has two woods of excellent value as hardwood flooring. Can we not produce and market beech and tawa flooring to the same high standard as our overseas competitors ? As far as is known to the State Forest Service there is no inherent difficulty involved. Any such substitution of local for imported woods is of paramount importance, inasmuch as it will assist to offset the fall in demand resulting from decreased building activities in the future. Increased exports, as well as decreased imports, will assist to maintain production at maximum level, and again the solution of the problem lies in improved service. Australia has revised its tariff in favour of New Zealand woods, but even with this advantage it will be necessary to pay improved attention to the marketing of the local woods on the Commonwealth markets. After the revision of the tariff in 1929, inquiries and orders for export increased immediately, but the Australian trade depression which followed afterwards resulted not only in a reduction in inquiries and orders, but also in many cancellations. The natural corollary to the upward trend in production resulting from the increased building activities of the 1919-26 period and the general high level of prices maintained throughout was the entry of a large number of new operators into the industry, as shown in the accompanying graph, which also charts the percentages of its eight-hour cutting-capacity at which the industry operated during the 1920-29 period.